In what may be seen as a surprise to some market observes, President Donald Trump provided an assist Tuesday to alternative energy stocks and exchange traded funds after it was reported that the White House is exploring a carbon tax to bolster revenue.
The Guggenheim Solar ETF (NYSEArca: TAN) and the VanEck Vectors Solar Energy ETF (NYSEArca: KWT) traded slightly higher immediately following the news.
KWT tracks a group of global companies involved in photovoltaic and solar power, or the provision of solar power equipment/technologies and material or services to solar power equipment/technologies producers. TAN also follows global companies involved in the solar industry and the entire value chain.
Solar stocks slid last year as increased competition pushed prices lower while customers pushed off on purchases in hopes of further cheaper prices, especially with Chinese companies raising production. Still, there are some positive signs.